Which of the following is NOT generally considered a problem with using the consumer price index to measure consumer prices?
A) Only private goods are considered and public goods are excluded.
B) Many federal benefits and income tax rates are indexed to the consumer price index.
C) Quality improvements are difficult to account for.
D) New products are often overlooked.

Question

Quizplus · Accepted Answer

Many federal benefits and income tax rates are indexed to the consumer price index, which means that they are automatically adjusted to keep pace with inflation. This can help to ensure that people's incomes and benefits keep up with the rising cost of living.

Which of the Following Is NOT Generally Considered a Problem